August 3 2005
‘Strong Result’ Shows Westland Milk Products On Track
Westland Milk products has announced a payout of $ 4.53 c/kg milksolids for the 2004/2005 season, a result company
chairman Ross Scarlett says was “strong”
Mr Scarlett said that more than half the company’s shareholders were supplying colostrum, which was included in the
$4.53 figure and equated to 6 c/kg in payout terms.
“To this can be added 6 c/kg of additional benefits in the form of costs paid by the company on behalf of suppliers,” Mr
Scarlett said.
And Mr Scarlett said that when looking at the result, the company’s $1.50 share standard needed to be taken into
consideration.
A relatively cold, wet spring and early summer saw production on a par with the previous season - but 12 % behind budget
– which impacted negatively on fixed costs. The company processed 412 8840 litres of milk which yielded 36 773 690 kgs
of milksolids.
Income, at $229.1 million, was $24.7 million (12.1 %) above that for the previous season. In contrast, overall
production, at 64 059 tonnes, was 587 tonnes (0.1 %) behind the 2003/04 season.
Mr Scarlett said the company was selling its product range in more that 40 markets, having built a global network of
customers.
“Most of our sales are direct. We are building strong long-term relationships with our customers, which will become
increasingly valuable in the future.
“We are on track to achieve our longer-term strategic objective of having a third of the company’s income coming from
premium-returning products, Mr Scarlett said.
He said that in the course of the season the company had invested $9 million in an anhydrous milkfat plant, $38 million
in casein and whey products manufacturing and in the year ahead will invest $34 million in caseinate manufacturing.
“These investments will improve the company’s manufacturing flexibility and give it more product options,” Mr Scarlett
said.
Looking ahead to the 2005/2006 season he said market fundamentals and currency projections suggested returns for the
company’s 336 suppliers would again be satisfactory.
ENDS